Lectra Reports Revenue Decline in 2025 but Confirms Strength of Recurring Business Model
On Thursday, Lectra Group announced its financial results for the fiscal year 2025, marked by a context of global trade and political tensions that impacted all its sectors. Despite a decline in overall revenue, the group confirmed growth in its recurring activities and maintained its strategic investments.
Revenue Performance in 2025
Lectra's revenue stood at 506.7 million euros in 2025, down by 2%. This decline occurred in a context marked by the use of tariffs as political levers from the first quarter, leading to a wait-and-see attitude among clients and particularly affecting investment decisions in equipment. The group notes that few lasting agreements between the concerned countries were concluded and no major relocations were observed. This decrease mainly reflects the decline in non-recurring revenue, which amounted to 126.6 million euros, down by 12%, while recurring revenue grew by 2% to 380.1 million euros, now representing 75% of total revenue. Within this recurring segment, SaaS subscription contracts showed a dynamic growth of 14%, reaching 89.3 million euros and constituting 18% of the group's revenue. The ARR as of December 31, 2025, increased by 14% on a comparable basis to reach 97.2 million euros. Furthermore, the impact of exchange rate fluctuations significantly weighed on the results, reducing revenue by 12.2 million euros.
Financial Performance and Profitability in 2025
The group's current EBITDA stood at 79.7 million euros in 2025, down by 8%, with an EBITDA margin of 15.7%, a decrease of 1.6 points. The current operating result fell by 14% to 38.2 million euros, while the net result amounted to 25.6 million euros, down by 13%. Nevertheless, the gross margin reached 369.3 million euros, representing a rate of 72.9%, an increase of 1.3 points due to a favorable sales mix and strict control of production costs. The safety ratio, calculated as the proportion of annual fixed expenses covered by the gross margin generated by recurring revenue, stood at 96%. The current free cash flow reached 57.0 million euros, significantly higher than the net result, confirming the group's cash generation capability. As of December 31, 2025, the working capital requirement stood at minus 39.7 million euros, reflecting one of the strengths of the economic model. Net debt amounted to 21.3 million euros after the disbursement of the second tranche of capital from Launchmetrics for 20.5 million euros and the payment of dividends of 15.2 million euros in the first half of the year.
Equity and Financial Strategy
As of December 31, 2025, the group's equity amounted to 360.3 million euros, while available cash reached 65.1 million euros against a financial debt of 86.4 million euros. The Board of Directors proposes a dividend payment of 0.35 euro per share for the fiscal year 2025, to be submitted to the General Meeting on April 29, 2026. For the period 2026-2028, the group aims for an increase in the current EBITDA margin of 120 to 180 basis points per year on a comparable basis, relying on a stronger growth of recurring contracts and strict cost control, assuming that equipment orders and consumables revenue remain stable excluding inflation. Investments in research and development will be maintained at a high level, representing about 12% of annual revenue. The group also plans to continue its strategy of targeted acquisitions and aims for a shareholder remuneration policy with a payout ratio of about 50% of the net result over the period.
